Whether it’s a new business venture apt to change the world as we know it or just a small side hustle, business owners need to make themselves aware of the requirements for incorporating and operating new businesses at the outset of their business venture.

Simple Start-up Tips

The following simple start-up tips are by no means exhaustive, but will serve as a good checklist for green-eyed entrepreneurs who are ready to take that next step:

Select the legal structure for your business

Depending on the size, structure, and nature of your business, there are a litany of business structures available. Choosing the proper structure is important, and it is often wise to share your proposed venture (confidentially) with an accountant or corporate lawyer so they can assist you in choosing the proper structure with which to operate your new business venture.

File the appropriate original documents

Once you’ve determined what business structure best suits your business venture, the next big step is to ensure that you prepare and file all of the necessary documentation. Depending on your selected structure, this could mean filing documents that include:

Articles of Incorporation and a Notice of Initial Return

Declaration/Registration of a Sole Proprietorship and a Registration of Business Name

Registration of a General or Limited Partnership and Business Name

A number of other filings required by law

If you fail to file all of the necessary documentation required under your business structure, you run the risk of dooming the business before it’s even off the ground.

Know your taxes and other source deductions

It is often the case that once your business is off and running the onus is on you to collect and remit all amounts required for various taxes and other source deductions. You will likely be required to file a number of formal returns summarizing the collection and remittance of specific taxes and deductions over a fixed period. If the proper amounts aren’t collected and remitted, and/or if the proper returns aren’t filed on time, the business may be required to pay additional penalties and interest in addition to the tax and source deduction amounts. It is very important that all business owners stay on top of their taxes and source deductions from day one.

Get properly insured

This is the tip that is most often overlooked by new business owners. While planning and strategizing how to make the business successful is vital for any business owner, some time also needs to be spent planning for the proverbial “rainy day” or worst-case scenarios. Hope for the best but plan and be prepared for the worst. Taking steps to cover both the business and the people involved in it with adequate insurance is vital to ensuring the safety and longevity of the venture in the long term.

Seek the advice of professionals

Although you may have had the million-dollar business idea, it doesn’t mean you have all the answers all the time. If any of topics covered in the tips above (or any issues moving forward with the business) fall outside of your comfort zone or known area of expertise, do yourself a favour and retain the services of a professional. Retaining professional assistance for various areas of the business is often more efficient and cost-saving in the long run, and best of all, it lets the driving minds behind the business venture focus on the aspects of the business that they are truly passionate about.

Starting off on the right foot is vital to ensure the short-term survival and long-term sustainability for business ventures of all sizes.

Joe is an associate in our corporate/commercial and real estate groups. His practice is focused on corporate and commercial transactions, commercial real estate, bank financing, mortgages, real estate development, as well as wills and estates.
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